That company was Enron, and the federal government, specifically the FERC, refused to investigate on a party line vote (GOP majority) at the time, because 1) it was making a hell of a lot of money for their corporate friends, and 2) it was damaging the political career of Democrat California governor Gray Davis, so much so it culminated with Davis's recall and election of Schwarnegger.
Hm, a California-based utility company with contracts from the State of California failing to live up to its obligations to provide power in the State of California.
Recall that the White House at the time repeatedly refereed to the blackouts in the most populous state in the union, and the 5th largest world economy as "California's problem.")
Yes, those silly Americans and their use of "Federalism" to preserve the rights of individuals, communities, and states. How savage and primitive of them.
I mean, if we were to actually admit that the burden of policing California's utilities contracts rested squarely on California that would be terrible! All those Democrat state senators, state representatives, and Governor Davis might actually be perceived to have failed in their basic duties of governing. On top of that the cost of the investigation would've been paid out of California's budget, rather than using resources paid for by all 50 states.That simply won't do!
Moral of the story: You can't trust deregulation
Yes, because you can obviously trust regulation to be above-board, effective, and fiscally responsible. It isn't like certain U.S. Senators used the regulatory powers of the National Government to promote corrupt Government Sponsored Enterprises to take over the mortgage market, poison it with bad loans, and back those bad loans with the promise of tax-payer funded bail-outs. They'd never have taken massive campaign contributions and sweetheart VIP mortgage deals as kickbacks. Nobody would ever be foolish enough to entrust people who committed such deed with leadership positions in the U.S. Senator, right?
Let's get real here. "Deregulation" is a red herring. Increasing regulation Volume rather than regulation Quality just leads to increased pay-days for lawyers, more patronage jobs for bureaucrats, and more cover for massive graft and corruption.